Sun Communities (SUI) AI Stock Analysis

• Market Cap: $16.81B
• Dividend Yield: 6.34%
• Average Volume (3M): 876.02K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.17
• Revenue Growth: -20.69%
• EPS Growth: 330.60%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.99
• Shares Outstanding: 123,184,630
• 10 Day Avg. Volume: 1,003,162
• 30 Day Avg. Volume: 876,021
• PEG Ratio: <0.01
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 6.71
• P/FCF Ratio: 19.15
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 7.93
• Enterprise Value/Gross Profit: 15.49
• Enterprise Value/Ebitda: 25.62
• 1Y Price Target: $141.22
• Price Target Upside: 3.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.95
• Revenue Forecast (FY): $2.33B

• Rating: 70 Outperform
• Price Target: $146.00 ▲(6.99% Upside)
• Action: Upgraded Date: 02/26/26
• Date: Action: Upgraded 02/26/26

The score is driven primarily by mixed but improving fundamentals (strong cash generation and better leverage, offset by earnings/revenue volatility) and constructive technical momentum. Valuation is supportive with a high dividend yield and moderate P/E, while the latest earnings call was broadly positive but tempered by RV transient pressure and UK cost headwinds.

Positive Factors

Balance Sheet Strength

A materially stronger balance sheet (large debt paydown, 3.4x net debt/EBITDA, no floating-rate exposure, $636M cash) meaningfully reduces refinancing and interest-rate risks, supports distributions and selective capital deployment, and increases resilience across cycles.

Stable Cash Generation

Consistent operating cash flow underpins the REIT model: it supports the elevated distribution, funds maintenance and growth capex, and enables buybacks/portfolio recycling without over-reliance on external financing, providing durable coverage for shareholder returns.

High MH Occupancy & NOI

Very high manufactured-housing occupancy and sustained same-property NOI gains reflect structural demand for affordable housing, pricing power in lot rents, and portfolio quality, supporting long-term rent growth and stable cash flows across economic cycles.

Negative Factors

Revenue & Earnings Volatility

Material year-to-year swings in revenue and reported earnings, including outsized non-operating gains in 2025, weaken confidence in underlying profitability and make FFO and distributable cash harder to predict, complicating capital allocation and investor visibility.

RV Transient Demand Pressure

Sustained weakness in transient RV demand reduces a meaningful revenue channel and increases reliance on annualized conversions; recovery requires structural rebooking improvements and channel expansion, so near-term headwinds could persist and weigh on segment margins.

UK Operating Headwinds & Impairment Risk

Rising UK payroll costs and a recent impairment indicate heightened local costs and valuation sensitivity; the region's exposure introduces recurring margin pressure and potential future write-downs, complicating portfolio optimization and capital allocation choices.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. is a REIT that, as of March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots within its manufactured housing and RV communities. Key revenue streams include rental income from long-term residents who lease lots for their manufactured homes, as well as short-term rental income from visitors to its RV parks. Additionally, the company earns revenue from property management services, sales of manufactured homes, and ancillary services such as utility billings and retail operations within its communities. Significant partnerships with home manufacturers and seasonal rental agencies also contribute to its earnings, enhancing its capacity to attract residents and visitors alike.

Sun Communities Financial Statement Overview

Summary

Resilient, consistently positive operating cash flow and improved leverage in 2025 are positives, but revenue has recently declined and reported profitability/returns show large swings. 2025 earnings also appear less cash-backed versus prior years, reducing confidence in earnings quality.

Income Statement

Revenue expanded strongly from 2020–2022, then flattened in 2023–2024 and declined meaningfully in 2025. Profitability is volatile: 2023 posted a loss, 2024 showed thin earnings, and 2025 shows unusually high net income and margin relative to operating profit (EBIT), suggesting results are being heavily influenced by non-operating items. Gross margin appears strong in 2025, but the sharp year-to-year swings reduce confidence in underlying earnings quality and consistency.

Balance Sheet

Leverage improved sharply in 2025 with debt-to-equity dropping well below prior years, which is a material balance-sheet positive. However, 2021–2024 reflect a more levered profile (roughly near or above 1x debt-to-equity), typical for a REIT but still a risk factor during periods of weaker growth. Returns on equity were weak/negative in 2023–2024 and rebound strongly in 2025, but the same volatility seen in earnings suggests returns may not be stable.

Cash Flow

Operating cash flow is consistently positive and relatively stable across the period, supporting the durability of the business model. Free cash flow growth is modest and turns slightly negative in 2025, but cash generation remains solid in absolute terms. A key watch item is that operating cash flow is low versus accounting earnings in 2025 (coverage meaningfully weaker than prior years), implying earnings may be less cash-backed in the most recent year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.31B	3.20B	3.18B	2.93B	2.26B
Gross Profit	213.50M	1.50B	1.49B	1.42B	1.15B
EBITDA	683.80M	1.10B	771.60M	1.11B	1.10B
Net Income	1.37B	89.00M	-213.30M	242.00M	380.20M
Balance Sheet
Total Assets	12.52B	16.55B	16.94B	17.08B	13.49B
Cash, Cash Equivalents and Short-Term Investments	636.10M	47.40M	29.20M	200.10M	252.70M
Total Debt	1.83B	7.35B	7.78B	7.13B	5.60B
Total Liabilities	5.33B	9.36B	9.77B	9.20B	6.76B
Stockholders Equity	7.07B	7.08B	7.08B	7.81B	6.62B
Cash Flow
Free Cash Flow	808.00M	888.80M	807.90M	752.20M	770.50M
Operating Cash Flow	808.00M	888.80M	807.90M	752.20M	770.50M
Investing Cash Flow	4.93B	-295.20M	-935.00M	-3.08B	-2.35B
Financing Cash Flow	-5.22B	-571.60M	78.40M	2.35B	1.57B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 136.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 136.46 is above the 20-day moving average (MA) of 129.42, above the 50-day MA of 126.60, and above the 200-day MA of 125.14, indicating a bullish trend. The MACD of 2.23 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELS	74 Outperform	$13.46B	33.43	22.11%	3.29%	0.61%	2.42%
SUI	70 Outperform	$16.81B	12.59	-0.97%	6.34%	-20.69%	330.60%
ESS	69 Neutral	$17.01B	24.53	12.09%	3.98%	6.92%	53.76%
MAA	68 Neutral	$16.04B	35.34	7.67%	4.42%	0.91%	6.55%
AMH	66 Neutral	$10.91B	25.42	6.36%	3.81%	7.63%	23.16%
CPT	66 Neutral	$14.96B	30.62	8.49%	3.90%	1.41%	-21.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Sun Communities Corporate Events

Sun Communities Issues 2026 Outlook and Risk Update

Sun Communities, Inc., a real estate investment trust listed on the NYSE under the ticker SUI, is a leading owner and operator of manufactured housing and recreational vehicle communities, as well as UK holiday parks. As of December 31, 2025, the company controlled about 179,000 sites across 513 communities, focusing on high-occupancy, rental-driven portfolios in the U.S., Canada, the U.K. and Australia.

The business generates roughly 92% of its net operating income from rental income, with manufactured housing contributing about 65% of real property NOI, and maintains high occupancy above 97% in its core segments. It emphasizes affordable residential and destination communities, backed by a low-leverage, investment-grade balance sheet and a track record of steady same-property NOI and rental rate growth over the past decade.

Sun Communities released an investor presentation on February 25, 2026, outlining its operating performance, portfolio mix and financial guidance for 2026. The materials highlight resilient real property operations, robust long-term growth in manufactured housing and RV rental rates, and continued sensitivity to macroeconomic, capital markets and regulatory risks that could affect liquidity, refinancing, occupancy and real estate taxation.

The company underscored extensive risk factors ranging from interest rate and cost inflation to natural disasters, regulatory changes and foreign exchange swings, signaling ongoing exposure despite its strong fundamentals. It also cautioned that its financial and operational guidance for 2026 is based on current assumptions and completed transactions only, and may differ materially from actual results due to these uncertainties.

The most recent analyst rating on (SUI) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Names Interim CFO Amid Leadership Transition

On February 4, 2026, Sun Communities appointed former long-time finance executive Fernando Castro-Caratini as interim Chief Financial Officer, Executive Vice President, Secretary and Treasurer, while launching a broad search for a permanent CFO. Castro-Caratini, who previously served in the same roles and held senior finance and capital markets positions at the company and Citigroup, rejoined under a Transition Services Agreement effective February 4, 2026, that secures his services through February 28, 2027, with structured salary, performance-based bonuses, a tenure bonus, and potential severance, signaling an emphasis on leadership continuity and financial stability.

The appointment followed the same-day mutual departure of Mark E. Patten from the CFO, Executive Vice President, Secretary and Treasurer roles, with the company stating his exit did not stem from any disagreement over financial policies, accounting practices, or disclosures. In connection with his separation, Sun Communities agreed to pay Patten $3 million in separation payments, underscoring an orderly transition intended to avoid disruption in financial oversight and reassure investors and other stakeholders about the company’s governance and reporting processes.

The most recent analyst rating on (SUI) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Appoints New Chief Financial Officer

On December 16, 2025, Sun Communities announced the appointment of Mark E. Patten as Chief Financial Officer, effective January 5, 2026, succeeding Fernando Castro-Caratini, who will transition to an advisory role. Patten brings over 35 years of experience in finance leadership roles within the REIT and professional services sectors, which is expected to support Sun Communities in advancing its strategic and financial priorities, driving sustainable growth, and ensuring a smooth transition.

The most recent analyst rating on (SUI) stock is a Hold with a $138.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Releases Investor Presentation December 2025

Sun Communities, Inc. announced an investor presentation available from December 1, 2025, highlighting its financial and operational performance. The company faces various risks, including market volatility, interest rate increases, and challenges in acquisitions and expansions, which could impact its future results and stakeholder interests.

The most recent analyst rating on (SUI) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.